The traditional vehicle ownership model is rapidly changing as more and more buyers opt for monthly payment schemes. According to the most recent studies, 60% of buyers bought their cars on finance in 2022. Furthermore, an impressive 80% admit that having the option of monthly payments would make them more likely to buy an EV.
New data from JATO Dynamics reveals the main factors behind customers’ preference to finance. Affordability is cited as the most important for 31% of the respondents who prefer paying a monthly fee instead of a large sum upfront. Also, 25% believe they will get a better car with finance, and another 25% find leasing beneficial for budgeting. The case appears to be similar in markets outside the US – a recent UK government study suggests that trade-in offers and finance arrangements are important for consumers.
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JATO reports that global EV sales in 2022 reached 6.61 million units, a number that is expected to grow significantly over the next few years. Access to finance options is only one of the factors that could lure more people to zero-emission vehicles. According to the study, the top reason for buying an EV is good battery range (51%), closely followed by convenient recharging (45%). Among the respondents, 21% are planning to buy an EV next year, and another 27% are thinking about it.
Shared ownership models are also gaining popularity, with 51% of consumers saying they would go for it in the future. The most important motivation is reduced costs (50%), followed by access to higher-quality vehicles (34%) and lower prices (33%). Among the consumers interested in a shared ownership model, 73% live in city centers and only 19% reside in rural areas, showing that the adoption of car sharing will have strong regional characteristics.
